tv Glenn Beck FOX News March 26, 2011 2:00am-3:00am EDT
hope you can join us. captioned by closed captioning services, inc [ applause ] >> glenn: hello, america. welcome to friday. tonight is a special show. every time we do a friday show it's always like hey, let's talk about something really depressing where we all want to hang ourselves. tonight it's the fed! oh, it's going to be spooky. during the financial crisis, most americans heard a lot about the federal reserve but most americans don't know anything about it, how it works, what it is, who etch runs it, how it's run they know that it buys our
debt, sets up interest rate, has a lot to do with the economic well-being of our nation. where did it come from? tonight as part of the e-4 focus, we'll delve into e-2 and get educated on the fed. g. edward griffin, author of this book. if one more person hands me this book, i really, i'm going to -- i get this from so many. i go out and people are like have you read this book? yes, i have. may i recommend have you read this book? if not, read it. "the creature from jekyll island." it's a fascinating book on the fed. the author is one of our guests tonight. we're going to start at the beginning, talk a little bit about what they're doing now, but i want you to know we are just going to start at the beginning. really, we'll give the history of the fed as told by the fed.
the happy tale on their own website. are you ready for this? it's great there we are. here it is. watch this. on their web site. "after alex sander hamilton spear-headed a movement advocating creation of central bank, the first bank of the united states was established in 1971." you see how great this is? the fed was started by a founding father. no. no. no, it wasn't. no. the first bank isn't the fed. what does it have to do with anything well, nothing. they just wanted to throw a founding father's name in there. the bank's charter ran for 20 years and because it took about 20 years before americans realized that bank of america thing, that is not working out. they've got too much power and influence, just like all the other founders. proposal to renew it failed. now back to happy story from the fed's website. the situation deteriorated to such an extent in 1860, a bill
to charter a second bank of the united states was introduced in congress. second bank was very much like the first. except bigger. 3.5 times bigger. always that way, isn't it? the charter lasted 20 years before people went what are we doing? americans realized it wielded too much power and influence and proposal to renew it also failed. then according to the fed website they got rid of the nasty charter thing and will of the people. "in 1907, a severe financial panic jolted wall street and forced several banks into failure. many americans thought their banking structure was sadly out of date and needed major reform." the first draft of the federal reserve act was called the aldridge bill because of the guy who wrote it was named aldrid and it failed.
president taft refused to support it. he was so fat they had to have a special bathtub for him. then it underwent surgery and reemission of the glass owen bill and of course got a signature from progressive woodrow wilson in 1913. well, that's the fed's story. it was introduced in 1907. in 1913, it finally came to be. isn't everything wonderful in sunshine and lollipop world? it wasn't drafted in congress. it was drafted on a private island off the coast of georgia in 1910. here is the island. jekyll island. it was drafted under great secrecy. jekyll island was retreat for billionaire like rockefeller and j.p. morgan in 1910, senator aldridge, the republican whip in the senate and the chair of the national monetary commission sent his
private railroad car to the new jersey railroad station where he and five other men were instructed to come one at a time and everybody pretend they just didn't know each other. aldridge wrote the original bill. he was the father-in-law to john d. rockefeller junior. so there is no special interest happening there. there was also abe ram piot andrew, the assistant secretary of the treasury. frank vanderlip representing rockefeller. davidson with benjamin strong with david and paul worber. he was a partner at coon, lobe and company. he was representing the rothchild banking family. oh, he is going to talk about the rothchilds now. he actually is an interesting character. if you ever saw little orphan annie, daddy warbucks was named after warber. these are the men that
represented one-fourth of the entire wealth of the world. you think we've got a problem with wealth now? those guys, one quarter of all the money in the world. the morgan, the rockefellers, warber, rothchild all in one room. but when do they start sacrificing chicken? it doesn't happen. that i'll tell you. these guys were competitors. according to g. edward griffin who we will talk to in a minute they came together to form bank cartel so they didn't have to compete against each other. they sid it was like oil or sugar cartel but this cartel went in partnership with the government. how great is that? kind of like the drug cartels in mexico. wait, i didn't say that out loud, did i? so for more than a week, these men sat around there. sat around a table and hammered out details of what
become the federal reserve system with five objectives. how many of these do you agree with? one, to stop the growing competition from the nation's newer banks. that doesn't sound good. two, to obtain franchise to create money out of nothing for the purpose of lending. that one doesn't sound good either. three. to get control of the reserves of all of the banks so the reckless ones wouldn't exposed to currency drains or bank runs. oh, that's the charity part. oh, gee, beave, thank you so much. then, to shift the losses from the bank owners to the taxpayer. it just gets better and better for you and me. suspect it? no. again, the answer is no. to convince congress the purpose was to protect the public. well, they started the federal reserve with no money, just a
checkbook. the government could go to the fed and obtain instant money without having to consult the taxpayer. what a country! money created out of nothing and given the government. loaned by the banks to you and me and we pay interest on it and it goes to them. interest on nothing. again, the fed is nothing more than a cartel like opec, except it's a money cartel. this cartel brought the federal government in to a partnership. where you and i have to answer to it. it's almost to enforce the rules of the cartel. to bring those in agreement with the federal law to protect you. operates under the protection of the federal government and the government has virtually given monopoly to create the nation's money supply. there are no elect officials
there is no accountability to anyone. the president doesn't get to say i'm going to name glenn beck to head of the fed. oh, please! sarah, when you're in, i'm available. did i say that one out loud, too? can't do that. the fed gives the president a lift to choose from. really? well, thank you chairman mao. the fed is privately owned. but by whom? good question no one knows. we can't open their books and we don't know who owns them. really? interesting spin from the federal reserve website. though they're set up like private corporation and member banks, they owe their resistance to act of congress and have a mandate to serve the public. therefore they're not really private companies. but rather owned by the
citizens of the united states. that is fantastic. let's all go to the bank and make a withdrawal. or lower interest rates at the bank we own. the next question and the answer on the site is are federal bank employees consider government employees? answer? no. employees of the federal reserve bank are not government employees. they're paid at part of their expenses, employee reserve bank, so it's charity. that's interesting. it's not really private. it's not really public. it's mysterious magic money dispenser that buys all of our own debt, sets our interest rate, sets our economic policy, loans billions of dollars to other countrys, helps us borrow billions from other countries and prints money out of three, just out of thin air there is no drive-through window but everything else sounds magical, doesn't it?
i have news for you. there is a lot of people when you start talking about the federal reserve, they start going into and then buildeberg with colonel sanders got together and they start going down crazy road there is no reason to do it. it's crazy enough. let's talk about just the facts, shall we? let me introduce you to a couple of guests because i think we have, i think we have some interesting times ahead. i have a feeling the audience is waiting. g. edward griffin is the author of the "creature from jekyll island" and mike calabria is the director of financial regulation at the cato institute. how are you, sir? >> doing well. >> glenn: did i get it right as far as you're concerned? >> mark >> glenn: what did i say? >> michael. >> glenn: sorry, mark.
>> my brother will be -- >> glenn: mark, did i get it right? >> yes, you did. >> glenn: i want to make sure i get g do i call you g. or edward? >> edward will work just fine. >> glenn: how about g. money? edward did i get the story right? and what did i miss? >> you got the story very, very right. a lot of very interesting details, of course, we don't have time for in a program like this, but the essence of it, you got exactly right. >> okay. what did i miss that is important? let me go here. i'll show you this time line. and this time line shows all of the crashes, not the panic, but the crashes in the united states. crash in '35, one in 1880. then it picks up. 1880, 1896, 1900, 1903, 1907. then nothing until 1929. '37, '38. '46,' 62, '87.
there seems to be a clump of crashes here is there anything nefarious about the crashes or is this bad policy and everything else? >> there are two things. first, you asked if there was anything left out. the important items were there but one thing that you might want to explain to the audience. the reason for the secrecy that you mentioned, why were they concealing their identities? why did they deny they went to this meeting? the answer is because if the american people had known that this bill, which was supposed to protect the american people from the big bad bankers was actually written by those same bankers, then the scam would have been out in the open. that's why they had to keep the whole thing secret so many years after the meeting took place. >> glenn: edward, hang on a second. we just did a story this week where the uions and the people say the big bad banks are getting all the money. i have thought to myself, wait
a minute. the unions are the ones that wracked up all the debt. then the government takes the money from the taxpayers and has given it to the banks, the banks through the central bank are causing all the problem. help me on this? >> we've seen the central bank push all the money in the system. the federal reserve played a key role in creating the housing bubble to begin with. after the dot-com bubble, and after 9/11, the fed cut rates. greenspan took them to historic lows. mortgage market, housing market took off. eventually the bubble was going to burst. burst in 2006 when the fed started raising rate they played a big role in this and trying to burst bubbles today. >> glenn: do you agree it's the last bubble? maybe in 2005 i said housing bubble, and then we're going to have the last bubble.
the money bubble. >> yeah. >> glenn: it is the last one. >> well, let's hope it's the last one. i suspect after this bubble burst, the fed will look for ways to create another bubble and make us forget about the last bubble. that's the way they are doing it. there is a conscious attitude in 2003, 2004, to say okay. we're coming in the off the recession across the dot-com bubble. what do we do to make people feel wealthier? what they decide to do is gin up the housing market. everybody will feel like they have money, put people to work. what are they trying to do now? gen up the stock market. >> glenn: we see the way they work the bubbles now. let me go back to the past. we see this clump of crashes here. i know, correct me if i'm wrong, i think it's like a panic in the 1890s. 1892, or 1896, where i believe it was j.p. morgan that loaned
money to the united states. then another one happened in 2003. he said i can't do this anymore. you're on your own. this gets our friends together and bail you out one more time. that is what led to this. correct? >> that's historic nature of it but underlying this we have to recognize the principle of the ponzi scheme. the system is a ponzi scheme as we live through it now. it works as long as the money supply continues to expand and expand and expand like any ponzi scheme. you pay off the first investors so they're happy. when it expands it works but when it stops the whole thing comes to an end. they have to keep expanding the money supply. then you create money out of
nothing, you have to face the fact it goes back to nothing. this makes the expansion and contraction inevitable. boom and bust are inevitable. if the money were backed by something solid like gold or silver that you just couldn't create out of thin air, then there wouldn't the contractions. it would be a nice even a playing field. >> glenn: most people think our money is backed by something in fort knox. i have asked by some congressman have asked to see the gold in fort knox and they can't see the gold in fort knox. >> that's surprising, because one could think -- i can understand why they wouldn't let me see it. i might want to take it out with me. >> glenn: the largest collection of gold is at the federal reserve, right? >> exactly. >> glenn: that's not american money. that the fed. >> it's the fed and what the new york federal reserve keeps is gold for other people.
they often put it on a cart and move it from one to another. >> glenn: do you believe we have a lot of gold in fort knox? is it still there? >> it's naive to think we have any gold there. but the reason you said, if they had it, they would show it. we don't have gold there. >> glenn: okay. back in a second. [ applause ] hi, anne. how are you doing?
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>> glenn: i want to introduce you to our guest. g. edward griffin, the author of "the creature from jekyll island," which is a book you must read. mark calabria from the cato institute. go to edward here for this question. whenever you go and talk about the fed, it immediately goes in to crazy town talk. it immediately goes to and then rothchild took a bottle of wine and kept little orphan children in there while they were sacrificing virgins in
volcanoes. you hear this crazy stuff. when the truth is scary enough. where does it come from? why do people feel compelled to go down into crazy town when just sticking to these facts alone should petrify people. or do you believe it is crazy? >> i don't know the answer to that. i do know what you say is true. i find it less and less true. i think in the beginning when i first began to research this, the reliable information on the fed was hard to find. so all you really had was this kind of garbage to choose from. a lot of speculation, a lot of theory and fantasy. now there is hardcore information out there and i see less and less of that is in the way after record it. >> glenn: you are talking to the chief conspiracy theorist on planet earth, i believe i've been dubbed now. do you believe that this kind of works to their advantage?
you can dismiss people? that is crazy. when you say i want to look at the books of the fed. i want to know who owns them. explain to me who is the owner of the fed? who is issuing this debt? who is making all the decision and money. show me the books. they can immediately say you don't know who owns this. well, no, that is a fact. don't you think it works to their advantage? >> they are trying to give you the perception, the monetary policy that we need ph.d.s around the table. this is too complicated for you to understand. don't worry yourself, trust us. we'll get it right. we have the public interest at heart. >> glenn: how frightened were you when you heard green span in an interview say there is stuff in the cbos that i don't even understand. i'm like what?
that is a reason for the secrecy. they're scared to death we figure out they don't know what they are doing and the whole show will be up. we figure out they don't know how to run the economy or moptary policy. >> glenn: all the secrets. they still think they have us snowed. >> glenn: edward, when you look at the fed, any idea who is getting rich? do they walk away at the end with piles of money? if we lose, are they still -- they're fine? who is walking away with it? >> i don't see it this way. these people have as much money as they could spend. they have so much wealth and mansion and yacht, it doesn't make that much difference. what the people are doing is they're taking the lench of this power, this financial power and they're converting
that in to political power. the vision now is much bigger than just making money. the vision is controlling the nation, controlling society and controlling the world. we heard the famous phrase. "a new world order." they use the phrase over and over again. it's their phrase they're serious about it. they are taking the money and they are buying up political leaders, they're buying up media outlets. buying up large organizations. >> glenn: show me where they are buying up the media organizations or the labor unions. >> here is how it works. the human being is a herd animal. we follow in groups. we follow leaders. so all anybody needs to do is control the society is control leadership of that society through what these people call the power centers. the large organizations.
the thing people belong to when they have leaders and follow. respect leaders. the political parties, labor unions, obvious things. church organizations so they know if they can just dominate the head of the organization, half of 1% of the population that is in control of the power centers they've got the masses in line. when you look at the tops of these organizations, they are in line with the federal reserve and new world order and that sort of thing. not the membership, but the top. >> glenn: it's the saul alinsky prince approximately of organize the organizers. come back. audience questions and then i want to ask you, mark, about ronald reagan. the story is that ronald reagan was kind of taking on the fed and rattling the cages and the fed taught him a lesson. and he kind of went back into line. we'll get into that in a second.
join us in 28 minutes. ♪ ♪ >> back now with g. edward griffin and mark calabria. edward is the author of creature from jekyll island. if you haven't read this book, you should. are you surprised, edward, how many people are reading the book now? how long did you write this? >> how long ago? it was published in 1994, the first year. i'm totally surprised because it's a big thick book, as you know. i thought it would be good for doorstop. people have taken an interest. >> glenn: got to fly off the shelve. i mean this sincerely. i have 100 copies of this myself because people come up to me all the time and say,
got to read this book. i'm like no, i have. >> no, you have to read the book. i have. now i just take it. amazing read. i want to go to ronald reagan. i heard that ronald reagan, you know, after the 1970s, and jimmy carter is a mild version of what i think we're in now, wow! that is scary, isn't it? he came in and wanted to change some things. the story is that the fed taught him a lesson. true? >> a lot of push back on the regulatory side. >> that is the reason. if you remember that reagan reappointed volcker one time but not the second time. because at that point they were not getting along that well. there were big differences in policy. this is despite that reagan was supportive of the volcker effort to bring inflation
down. they wanted to redo the banking legislation in a way that volcker did not agree with. you may or may not know that the regional presidents have to be approved by the federal reserve in washington. a number of people that he wanted appointed to the federal reserve bank and hard-money people. and volcker vetoed them. so he kept pushing reagan's people out of the federal reserve system. >> if people want to know one story of the federal reserve to turn their hair the color of mine, what would it be? >> that would be what i call a mandrake mechanism. that is the process by which money is created out of nothing and put in the occasion. and withdrawn from the economy. if that doesn't cause your hair to turn white, i don't know what it is. >> when they said on capitol hill, when bernanke said we
will not monotize our debt. i got on the air and said he's already lying. >> that's what they do. that's all they know how to do. >> they monotize the debt. >> but they are still claiming, i don't know if they are now. they were a few months back -- they are still claiming that? >> not going to monotize. >> but they are. >> they say we're not printing money. we're digitizing it. a big interview with bernanke saying we're not creating new money. they physically weren't spending money. but if i took money out of the account and put it in your account you would feel like you had more money. he said we're not spending more money and it was disingenuous. >> do you believe that we are headed for real tough time?
>> i think we are headed for a real tough time. you mentioned a bad version -- we have occurrence to be in the '70s and you remember that the word "stagflation " a that went away and we might have a situation where happy with the high inflation and unemployment. >> how many people here would just be like the mana from heaven if we hit the 1970 s? it would be like wow! only as bad as jimmy carter years. that's fantastic. edward, your opinion on can we get rid of the fed? is it possible? >> it's technically possible because the federal reserve was created by an act of congress. it can be abolished by an act of congress. what must happen before congress has backbone to do that? a complete change in washington. by and large, the people in office today are very much
behold on the this creature. not going to do it. political agenda here. >> glenn: if you have people who like you say can control through monetary policy, you would never get those people. they control too much of the money. they make it enormous. >> no you're right. we have precedent for that in the fight between president jackson and the second bank of the united states. the head of the central bank, which is that version of the reserve today, name was nicholas biddle and he fought back exactly that way. when jackson tried to generate support for getting rid of the second bank, he said i will pull the country down. he sate the people will fall and the bank will not fall. that is his exact quote.
you can be sure contest of this kind, challenging the federal reserve power there is no question in my mind that they will pull out the stops and try to ruin the economy and blame them on the fact we were challenging the president reserve. >> glenn: let me ask a question from you mark, and then we have to take a break. how connected are the central banks? how connected. when i saw them say we're going to devalue their money to pull japan out, hold it. shouldn't you talk to the people of the world? they are just moving together as one. central bank to central bank. >> there really is a clause that's there from the beginning. from the main stream economist recognize federal reserve effort to support british pound, support bank of england in the 1920s, helped cause
the stock market bubble here. it's been continued ever since. this is the problem. they talk to each other. the constituency protects each other and makes them look good, not listen to what the american public wants. there is a problem that they are not looking out for our interest as much as the interest of each other. >> glenn: back in just a second. ♪ fare thee well ♪ farewell ♪ mr. gloom be on your way ♪ ♪ though you haven't any money you can still be bright and sunny ♪ ♪ sing polly wolly doodle all the day ♪
they flooded the economy with currency to like jump-start it. how much money would have to be blooded in to our economy either at like dollars or percent of the gdp to have that same situation they had in the weimar republic. >> inflation rate in germany in the 1920s were off the charts. literally people were being paid twice a do so you could go to the grocery store before the prices jump. you could get a cup of coffee and literally before you got done with your coffee it would be higher than it was from the previous coffee. >> zimbabwe. >> hungary. >> it's feasible. but we are a long way away from that. we are going to see inflation in high double digit. 2% inflation, which the federal reserve tells us is
price stability, half of the value of any asset is wiped out. this will slowly erode over time. if you get to 10 to 20% infla mation, you protect the wealth you have. >> glenn: edward, do you have a point of context here on the printing of money? they are talking seriously of printing money out of a way out of the unsustainable debt. >> that's the theory. that is their only trick. so we anticipate, that is the trick they will play. in terms of inflation, i'm not as optimistic about the inflation rate as impressed by the 2% or 3% figure. i believe the government is not telling us the truth about
the flew inflation rate. >> glenn: you think? >> i don't think i'm alone in this. >> glenn: no. >> what is the true rate? i believe from what i see it is pushing up to 20%. that's the rate of gold expand and that's historically an accurate measure of true inflation. >> glenn: all the experts tell me because they digitize the money and most of it is sitting in banks, that the people who are trying to collapse the economy, they got the banks who have the money. we want that money. the experts say the banks have the money and it's not in the system. only a problem when it's pushed in the system. the problem is not just inflation but if you want to pull it back, you have to pull it back from highest interest
rate. how high do interest rate have to be to pull and suck the money back in to the federal reserve? >> do you remember. >> in the early '80s, the prime rate got over by 21%. >> right. >> so one should start with we are going to see the higher interest rates because of inflation and or the fed having to raise the rates to fight inflation. >> glenn: i talked to art laffer two years ago and i said art, how high do they have to be? >> he said i won't give you a number. he said substantially higher than what we saw in the 1970s and '80s. my question is how do you not stop the heart of the economy if you have 25% interest rate? nobody has an answer. >> you throw the economy in the recession. that's what happened in the
[ applause ] >> glenn: we were just having an interesting conversation with morgan. how old are you, morgan? >> 23. >> glenn: 23. you just asked a question in the break, i don't have anything. >> right. >> glenn: what do i do, right? >> what do you do when it comes crashing down if you don't have anything? because you're just starting out. >> i think you do need to be concerned. fortunately for good or bad, you're not in as bad shape as people who are savers. the people hit the worst by this are people who are saving all their lives and near retirement. you hopefully have enough time to plan against this. the most immediate thing you do is build your capital. labor is worth something and brains are always worth something. hopefully they can't inflate that away. any physical wealth is
something you have to protect yourself and hedge it. look at a varity of commodities. they tend to hold value in inflation. >> glenn: then buckle up. >> yes. >> buckle up. was it alex? steve, yes, steve. >> it is gold that backs the etf. >> that is the electronic transfer, right? >> the federal reserve started out in 1913, you had to have 40 cents of gold for every dollar they issued. we aren't even at one cent. there is no way to get gold for the dollar bill. we talked at how the change their line about the fed. a lot of people forgot up until 1971 when nixon took us off the international gold
standard, there was an anchor that kept the dollar stable. you didn't see burst of inflation history until after that happened. if we did nothing but went back on gold, some standard internationally, you get a really big concern of the fed. >> glenn: let's go back here. ed had question about the gold standard. >> i understand there is a bill in the north carolina house, hr-301. to create a state based currency. backed by gold and silver. >> utah just backed -- passed a bill and the governor signed it saying we will accept gold. i want to get back to gold standard without massive pain, next. [ applause ]
>> glenn: the states that want a gold standard, like utah? good or bad idea? >> great idea. you can't wait on the federal government to fix this. the answer has to come from somewhere, the states. >> glenn: i think this is smaller than that. the answer will come from you. someone in the audience said if we don't have anything, what do we do? look at pioneers or pilgrims on the mayflower. they had nothing. they survived and thrived because they had each other and they had god. look to sod